Date: JULY04, 2018
Daily World Economic and Financial News
(CNBC): JULY04, 2018 ---- Major currencies marked time on Wednesday while the Chinese yuan recovered from 11-month lows, after efforts by authorities the previous day to calm financial markets which had been rattled by worries about trade wars. Both the yuan and Chinese equity markets have been on edge ahead of July 6, when U.S. tariffs on $34 billion worth of Chinese goods kick in. Beijing has said it would retaliate with tariffs on U.S. products.
The onshore yuan opened at 6.6365 per dollar, after hitting 11 month low of 6.7294 on Tuesday. China's central bank moved to soothe markets on Tuesday after the yuan dropped through the psychologically key 6.7 to the dollar mark, hitting its lowest in 11 months as anxieties over U.S. trade frictions deepened. In a statement posted on the website of the People's Bank of China, Governor Yi Gang said the central bank was closely watching fluctuations in the foreign exchange market and would seek to keep the yuan at a stable and reasonable level. Cross-border capital flows were under control, Yi said. A Chinese central bank adviser was also quoted as saying authorities did not expect significant yuan depreciation, which also helped the yuan reverse early losses to move back into positive territory.
(CNBC): JULY04, 2018 ---- The dollar was down 0.2 percent to the yen at 111.35 while the euro traded up 0.1 percent at $1.1665.
(CNBC): JULY04, 2018 ---- The Canadian dollar strengthened against greenback on Tuesday as oil prices rose to 3-1/2-year highs and domestic manufacturing data supported the view that the Bank of Canada will hike interest rates next week.
(CNBC): JULY04, 2018 ---- Elsewhere, the Mexican peso firmed sharply on Tuesday after the newly elected president, Andres Manuel Lopez Obrador, sought to assuage investors, magnifying a global bounce in emerging market assets.
(CNBC): JULY04, 2018 ---- Oil prices edged up on Wednesday, lifted by a report of declining U.S. fuel inventories amid the ongoing crude supply outage at Syncrude Canada in Alberta, which usually supplies the United States. U.S. West Texas Intermediate (WTI) crude futures were at $74.60 a barrel at 0044 GMT, up 46 cents, or 0.6 percent, from their last settlement. WTI the previous day hit its highest since November 2014 at $75.27 a barrel. Brent crude futures were at $77.82 per barrel, up 6 cents from their last close.
(CNBC): JULY04, 2018 ---- Gold prices rose to a one-week high early on Wednesday, rebounding from a seven-month low touched in the previous session, as the dollar weakened against the yen and an end-of-week deadline loomed for U.S. tariffs on Chinese imports. Spot gold was up 0.4 percent at $1,257.51 an ounce as of 0058 GMT. It touched a one-week high of $1,257.63 earlier in the session. The metal fell to $1,237.32, its lowest since Dec. 12, in the previous session. U.S. gold futures were 0.4 percent higher at $1,258.70 an ounce.
(REUETERS): JULY04, 2018 ---- The dollar was down 0.2 percent against the yen at 110.3.
(CNBC): JULY04, 2018 ---- The European Central Bank's chief economist said on Tuesday he was confident inflation in the euro zone would continue accelerating towards the ECB's target of just under 2 percent even after the end of its massive bond purchases.
(BLOOMBERG): JULY04, 2018 ---- U.S. stocks reversed an early climb and ended lower Tuesday, as weakness in technology and financial shares weighed on benchmarks. Oil briefly rose above $75 a barrel for the first time since November 2014 before paring the gain.
(REUTERS): JULY04, 2018 ---- Asian stocks were on shaky ground on Wednesday while the Chinese yuan stood near 11-month lows as the specter of a Sino-U.S. trade war haunted investors ahead of an end-of-week deadline for U.S. tariffs on billions of dollars worth of Chinese imports.
EUR/USD technical outlook
The EUR/USD pair settled around 1.1650 mid-US afternoon as Wall Street closed earlier, little changed for the day, and heading into the Asian session with a neutral-to-bearish stance in the short-term, given that in the 4 hours chart, the pair is still developing between moving averages, with the 200 SMA maintaining its bearish slope above the current level. The Momentum indicator in the mentioned chart heads south around its mid-line, while the RSI heads nowhere at around 52. The 1.1620 level is the immediate support, with a stronger one at 1.1590, with a break below this last needed to confirm a steeper decline.
Support levels: 1.1620 1.1590 1.1550
Resistance levels: 1.1670 1.1720 1.1755
International & Financial Terms
1. Back and Filling: Numerous small rises and falls in a market, but without any overall major change in price level.
2. Last Notice Day: Final for the issuing of notices of intent to deliver against the future contract.
3. Disinflation: Slowing down of the rate at which prices rise.
4. Loan Stock: Long term interest bearing stock issued by a company
5. Promissory Note: Written promise to pay use as an instrument of commodity futures trading.
Compiler: A Bank Dealing Room Section
Management of International Deputy The Expert In Charge Of Dealing Room